Celanese said Wednesday it will sell its oxo products and derivatives businesses, including European Oxo GmbH (“EOXO”), a joint venture between Celanese AG and Degussa AG, to Advent International, a global private equity firm, for $630 million.
The sale includes oxo and derivative businesses at Celanese’s Oberhausen, Germany, and Bay City, Texas, facilities, and portions of its Bishop, Texas, facility. EOXO’s facilities within the Oberhausen and Marl, Germany, plants are also included in the sale.
The oxo derivative chemicals business of Celanese, which has about 1,100 employees, posted revenue of $700 million and has EBITDA margins of about 10 percent. EOXO, which has approximately 200 employees, has non-consolidated revenue of approximately $700 million and contributes $5 million to $10 million of equity earnings to Celanese annually.
“We are confident that customer supply will not be disrupted as we transition through this process,” said David Weidman, president and chief executive officer of Celanese. “In addition, we believe that this sale will allow Advent International to focus and further strengthen these businesses in a manner consistent with customer interests.”